2015...• 10.7% spain. at 30 june 2015, loans to customers totalled 282.9 million euros, comprising...

1Bigbank AS I CONSOLIDATED INTERIM REPORT FOR THE SECOND QUARTER 2015

2015Second quarter interim report

2 Bigbank AS I CONSOLIDATED INTERIM REPORT FOR THE SECOND QUARTER 2015

ContentsReview of operations ........................................................................ 4

Significant economic events ................................................................................. 4

Key performance indicators and ratios .................................................................... 4

Financial review ...................................................................................................5

Group’s capital ratios ............................................................................................8

Bigbank group structure ....................................................................10

Condensed consolidated interim financial statements ............................... 11Consolidated statement of financial position ........................................................... 11

Consolidated statement of comprehensive income ................................................... 12

Consolidated statement of cash flows ................................................................... 13

Consolidated statement of changes in equity ...........................................................14

Notes to the condensed consolidated interim financial statements .............................. 15

Note 1. Accounting policies ............................................................................... 15

Note 2. Cash equivalents ................................................................................. 15

Note 3. Financial assets held for trading .............................................................16

Note 4. Loans to customers ..............................................................................16

Note 5. Loan receivables from customers by due dates ......................................... 17

Note 6. Ageing analysis of loan receivables ......................................................... 17

Note 7. Loan receivables from customers by contractual currency ...........................18

Note 8. Impairment allowances by loan assessment category ...............................18

Note 9. Past due loans ....................................................................................19

Note 10. Held-to-maturity financial assets ......................................................... 20

Note 11. Other receivables ............................................................................... 20

Note 12. Prepayments .................................................................................... 20

Note 13. Investment properties ..........................................................................21

Note 14. Deposits from customers .....................................................................21

Note 15. Other reserves....................................................................................21

Note 16. Net currency positions ....................................................................... 22

Note 17. Contingent liabilities and assets pledged as collateral .............................. 22

Note 18. Interest income ................................................................................. 22

Note 19. Interest expense ................................................................................ 23

Note 20. Other income ................................................................................... 23

Note 21. Other operating expenses ................................................................... 23

Note 22. Other expenses................................................................................. 23

Note 23. Related parties ................................................................................ 23

Statement by the management board ..................................................24


Bigbank AS consolidated interim report forthe second quarter of 2015

Business name

Registry

Registration number

Date of entry

Address

Phone:

Fax:

E-mail

Corporate website

Financial year

Reporting period

Chairman of the management board

Business line

Auditor

Reporting currency

BIGBANK AS

Commercial Register of the Republic of Estonia

10183757

30 January 1997

Rüütli 23, 51006 Tartu, Estonia

+372 737 7570

+372 737 7582

[email protected]

www.bigbank.ee

1 January 2015 – 31 December 2015

1 January 2015 – 30 June 2015

Kaido Saar

Provision of consumer loans and acceptance of deposits

Ernst & Young Baltic AS

The reporting currency is the euro and numerical

financial data is presented in millions of currency units

rounded to three digits after the decimal point.

The Public interim report can be accessed on the website of Bigbank AS at www.bigbank.ee.

The version in English can be accessed at www.bigbank.eu.


REVIEW OF OPERATIONS

Review of operationsSignificant economic events

Loan portfolio of Bigbank AS (hereinafter also “Bigbank” and the “Group”) grew moderately du-ring the second quarter of 2015. Group’s loan port-folio increased 0.8 million euros i.e. 0.3% during the quarter. The largest contributor to the growth of the loan portfolio was the Lithuanian branch.

The Group’s net profit for the second quarter of 2015 comprised 2.8 million euros. Profit before impairment allowances totalled 9.2 million euros in the second quarter of 2015. The corresponding figure was 8.2 million euros in the second quarter of 2014 (an increase of 12.1%).

The supervisory board of Bigbank AS has five members – the chairman of the supervisory bo-ard Parvel Pruunsild and the members Vahur Voll, Juhani Jaeger, Raul Eamets and Andres Koern. The management board has three members, new

member – Bigbank’s head of technology Agur Jõgi – was elected in May, while Veiko Kandla was recalled from the management board. Kaido Saar continues as the chairman of the management bo-ard and Ingo Põder as a member of the manage-ment board.

At the end of the second quarter of 2015, Bigbank had a total of 454 employees: 224 in Estonia, 85 in Latvia, 60 in Lithuania, 33 in Finland, 29 in Spain and 23 in Sweden.

At the end of the second quarter, the Group had 5 branch offices, of which 1 were located in Estonia, 2 in Latvia, 1 in Lithuania and 1 in Spain.

Bigbank AS has signed a merger agreement with its subsidiary OÜ Kaupmehe Järelmaks after the balance sheet date, on 17 August 2015. Merger is intended to increase operational efficiency after it is completed in the fourth quarter 2015.

Key performance indicators and ratios

Financial position indicators (in millions of euros) 30 June 2015 31 Dec 2014 Change

Total assets 335.531 324.758 3.3%

Loans to customers 282.883 275.101 2.8%

of which loan portfolio 312.674 304.216 2.8%

of which interest receivable 21.356 23.405 -8.8%

of which impairment allowances -51.147 -52.520 -2.6%

of which impairment allowances for loans -38.544 -40.832 -5.6%

of which impairment allowances for interest receivables -7.528 -7.615 -1.1%

of which statistical impairment allowances -5.075 -4.073 24.6%

Deposits from customers 247.290 239.033 3.5%

Equity 83.932 81.259 3.3%



Financial performance indicators (in millions of euros) Q2 2015 Q2 2014 Change

Interest income 16.314 13.992 16.6%

Interest expense 1.692 1.925 -12.1%

Expenses from impairment allowances 6.365 6.345 0.3%

Income from debt collection proceedings 1.241 1.661 -25.3%

Profit before impairment allowances 9.158 8.168 12.1%Net profit 2.793 1.823 53.2%

Ratios 2Q 2015 1Q 2015 Q4 2014 Q3 2014 Q2 2014

Return on equity (ROE) 13.5% 6.5% 22.6% 20.2% 10.1%

Equity multiplier (EM) 4.0 4.0 4.1 4.2 4.3

Profit margin (PM) 15.3% 7.4% 25.6% 20.6% 11.2%

Asset utilization ratio (AU) 22.0% 21.6% 21.7% 23.3% 20.8%

Return on assets (ROA) 3.4% 1.6% 5.6% 4.8% 2.3%

Price difference (SPREAD) 16.0% 15.8% 15.0% 16.1% 13.8%

Ratios are presented on an annual basis (i.e. annualised).

The statement of financial position indicators used in calculating the ratios are found as the arithmetic means of respective data as at the end of the month preceding the reporting quarter and as at the end of each month of the reporting quarter. In the case of indicators of the consolidated statement of comprehensive income, the annualized actual data of the reporting quarter are used.

Financial reviewFinancial position

As at 30 June 2015, the consolidated assets of Bigbank AS Group totalled 335.5 million euros, having increased by 8.2 million euros (+2.5%) du-ring the quarter.

As at 30 June 2015, loans to customers accounted for 84.3% of total assets, the proportion of liquid

assets (amounts due from banks, financial assets held for trading and held-to-maturity financial as-sets) was 11.0%.

At the end of the second quarter, liquid assets to-talled 36.9 million euros.

Part of bank’s liquidity buffer was placed in a trading portfolio of debt securities, which are highly liquid, hold investment grade credit

Explanations of ratios:

Return on equity (ROE) – net profit to equity

Equity multiplier (EM) – total assets to total equity

Profit margin (PM) – net profit to total income

Asset utilisation (AU) – total income (incl. interest income, fee income, dividend income and other operating income) to total assets

Return on assets (ROA) – net profit to total assets

SPREAD – ratio of interest income to interest-bearing assets less ratio of interest expense to interest-bearing liabilities



ratings, and can be sold at any moment. Financial assets held for trading totalled 11.3 million euros as at 30 June 2015.

Free funds were partly invested also in short-term debt securities with fixed payments and maturiti-es, which the Group intends to and is able to hold until maturity. At 30 June 2015, the Group had 1.7 million euros of such debt securities.

At the end of the second quarter, the Group had 170 thousand loan agreements, 70 thousand of them in Latvia, 39 thousand in Estonia, 30 thousand in Lithuania, 13 thousand in Finland, 11 thousand in Spain and 7 thousand in Sweden.

Geographical distribution of loans to customers:

• 23.5% Latvia,

• 18.0% Finland,

• 17.3% Estonia,

• 15.3% Lithuania,

• 15.2% Sweden,

• 10.7% Spain.

At 30 June 2015, loans to customers totalled 282.9 million euros, comprising of:

• the loan portfolio of 312.7 million euros, loans to individuals accounting for 94.9% of the total;

• interest receivable on loans of 21.3 million eu-ros;

• impairment allowances for loans and interest receivables of 51.1 million euros (consisting of an impairment allowance for loans of 38.5 mil-lion euros, an impairment allowance for interest receivables of 7.5 million euros and a statistical impairment allowance of 5.1 million euros).

Bigbank’s loan portfolio is diversified – at the re-porting date the average loan was 1,835 euros and as at 30 June 2015, 40 largest loans accoun-ted for 4.6% of the loan portfolio.

Bigbank AS focuses on the provision of consu-

mer loans. In line with the corporate strategy, as at 30 June 2015 loans against income accounted for 88.3%, loans against surety for 4.0%, loans secured with real estate for 7.5%, loans with insu-rance coverage for 0.1% and loans granted against other types of collateral for 0.1% of the total loan portfolio.

As regards past due receivables, it is important to note that the collection of non-performing consu-mer loans differs significantly from the recovery of loans that have physical collateral (for examp-le, mortgage-backed loans). Due to their nature (as a rule, consumer loans are backed with the customer’s regular income), claims related to ter-minated consumer loans are satisfied in smaller instalments over an extended period rather than in a lump sum raised through the sale of the col-lateral.

Past due loans comprise loan principal that has fallen due. Under the terms and conditions of its loan agreements, the Group may terminate an agreement unilaterally if at least three schedu-led payments are in arrears. When an agreement is terminated, the customer has to settle any outstanding loan principal, any accrued interest, and any collateral claims resulting from the sett-lement delay.

Loans past due for more than 90 days consist of past due principal payments plus the total amount of loan principal that has fallen due in connection with termination of agreements.

To mitigate the risks arising from customers’ pay-ment behaviour and to cover potential credit los-ses, the Group makes impairment allowances, which are created on a conservative basis. At 30 June 2015, impairment allowances totalled 52.0 million euros, consisting of:

• impairment allowances for loan receivables of 38.5 million euros,

• impairment allowances for interest receivables



• statistical impairment allowances of 5.1 million euros,

• impairment allowances for other receivables of 0.9 million euros.

Where debt recovery proceedings do not yield ex-pected results, the underlying receivable is written off the statement of financial position.

At the end of the second quarter of 2015, the Group’s liabilities totalled 251.6 million euros. Most of the debt raised by the Group, i.e. 247.3 million euros (98.3%) consisted of term deposits (including subordinated deposits in the amount of 1.9 million euros).

In the second quarter of 2015, the Group’s equity was 83.9 million euros. The equity to assets ratio amounted to 25.0%.

Financial performance

Interest income for the second quarter reached 16.3 million euros, increasing by 2.3 million eu-ros (16.6%) year over year. The increase in interest income results from growth in the loan portfolio.

The period’s ratio of interest income (annualised) to average interest-earning assets was 18.8% and (annualised) return on the loan portfolio accounted for 20.8% of the average loan portfolio.

Interest expense for the second quarter of 2015 was 1.7 million euros, decreasing by 0.2 million euros year over year (12.1%).

The ratio of interest expense to interest income was 10.4 %. The ratio of interest expense to ave-rage interest-bearing liabilities (annualised) was 2.9%.

Other operating expenses for the second quarter totalled 2.2 million euros (an increase of 0.1 mil-lion euros year over year).

Salaries and associated charges for the second quarter of 2015 amounted to 3.8 million euros,

including remuneration of 2.3 million euros. As at the end of the period, the Group had 454 emp-loyees.

In the second quarter, impairment losses increa-sed by 6.4 million euros, consisting of:

• impairment losses on loan receivables of 5.0 million euros,

• impairment losses on interest receivables of 1.1 million euros,

• impairment losses on other receivables of 0.3 million euros.

Impairment allowances are made on a conserva-tive basis.

Other income for the second quarter of 2015 was 1.3 million euros, the largest proportion of which resulted from debt collection income. In the same period of 2014, other income was 1.7 million eu-ros.

Other expenses for the second quarter reached 0.7 million euros, decreasing by 0.1 million euros year over year.

The Group’s net profit for the second quarter of 2015 amounted to 2.8 million euros. In compari-son to the second quarter of 2014, net profit has increased by 1.0 million euros (53.2%).

Second-quarter profit before impairment allowances was 9.2 million euros, the correspon-ding figure for the second quarter of 2014 was 8.2 million euros (an increase of 12.1%).



Group’s capital ratios

Basel III Basel III

As at30 June

201531 Dec

2014

Paid up capital instruments 8.000 8.000

Other reserves 0.800 0.800

Previous years retained earnings 70.065 58.897

Other accumulated comprehensive income 1.066 1.087

Other intangible assets -1.423 -1.181

Profit or loss eligible - 11.168

Adjustments to CET1 due to prudential filters -0.105 -0.193

Common equity Tier 1 capital 78.404 78.578

Tier 1 capital 78.404 78.578Tier 2 capital 1.539 1.689Deductions - -

Total own funds 79.943 80.267

Basel III Basel III

As at30 June

201531 Dec

2014Risk weighted exposure amounts for credit and counterparty credit (standardized approach)

Central governments or central banks 1.673 0.635

Regional governments or local authorities 0.368 -

Institutions 7.318 3.455

Corporates 17.752 13.680

Retail 158.800 146.966

Secured by mortgages on immovable property 4.966 4.488

Exposures in default 47.004 58.279

Other items 18.240 17.290Total risk weighted exposure amounts for credit and counterparty credit (standar-dized approach) 256.121 244.793

Total risk exposure amount for foreign exchange risk (standardized approach) 0.257 2.501

Total risk exposure amount for operational risk (standardized approach) 80.860 68.504

Total risk exposure amount for credit valuation adjustment (standardized approach) 0.749 2.924

Total risk exposure amount 337.987 318.722

Total risk exposure amount

Own funds



Capital ratios

Basel III Basel III

30 June

201531 Dec

2014

CET1 Capital ratio 23.2% 24.7%T1 Capital ratio 23.2% 24.7%

Total capital ratio 23.7% 25.2%Leverage ratio 23.6% 22.9%

Own Funds are calculate on the base of Regu-lation (EU) no 575/2013 of the European Parli-ament and of the Council on prudential require-ments for credit institutions and investment firms that incorporate the Basel III framework.

Leverage ratio is calculated by dividing the capital measure (Tier 1 capital) by total exposure measu-re and is expressed as a percentage.



1 registered in the Republic of Estonia

2 registered in the Republic of Latvia

3 registered in the Republic of Lithuania

4 registered in the Republic of Finland

5 registered in the Kingdom of Spain

6 registered in the Kingdom of Sweden

The branches in Latvia, Lithuania, Finland, Spain and Sweden offer lending services similar to tho-se of the parent. In addition, the parent and its Latvian, Finnish and Swedish branches offer de-posit services. In addition, Bigbank AS provides cross-border deposit services in Germany, the Ne-therlands and Austria. The core business of OÜ

Rüütli Majad is managing the real estate used in the parent’s business operations in Estonia. OÜ Balti Võlgade Sissenõudmise Keskus and its subsidiaries support the parent and its branches in debt collection and OÜ Kaupmehe Järelmaks offers hire purchase services.

Bigbank group structureBigbank AS was founded on 22 September 1992. A licence for operating as a credit institution was obtained on 27 September 2005. Bigbank’s core services are term deposits and consumer loans.

The Group’s structure at the reporting date:

Bigbank ASBigbank AS

Latvijas filiāle2

Bigbank AS filialas3

Bigbank AS Suomen sivuliike4

Bigbank AS Consumer Finance

Sucursal en Espana5

Bigbank AS Sverige Filial6

Baltijas Izaugsmes

Grupa AS

Balti Võlgade Sissenõudmise

Keskus OÜOÜ Rüütli majad

OÜ Kaupmehe

Järelmaks

Baltijas Parādu Piedziņas Centrs

SIA

Baltijos Skolų Išieškojimo

Centras UAB


CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(in millions of euros, unaudited)

Condensed consolidated in-terim financial statementsConsolidated statement of financial position

As at Note 30 June 2015 31 Dec 2014

Assets

Cash and balances at central banks 1.075 20.150

Cash and balances at banks 22.930 13.665

Financial assets held for trading 3 11.264 -

Loans to customers 4,5,6,7,8,9 282.883 275.101

Held-to-maturity financial assets 10 1.672 1.186

Derivatives with positive fair value 0.055 0.225

Other receivables 11 3.843 2.064

Prepayments 12 3.287 3.967

Property and equipment 3.439 3.426

Investment property 13 0.986 1.100

Intangible assets 1.423 1.181

Deferred tax assets 2.674 2.693

Total assets 335.531 324.758

Liabilities

Deposits from customers 14 247.290 239.033

Derivatives with negative fair value 0.122 0.075

Provisions 0.215 0.216

Other liabilities 2.972 3.032

Deferred income and tax liabilities 1.000 1.143

Total liabilities 251.599 243.499

Equity

Share capital 8.000 8.000

Capital reserve 0.800 0.800

Other reserves 15 0.961 0.894

Earnings retained in prior years 74.171 71.565

Total equity 83.932 81.259

Total liabilities and equity 335.531 324.758


CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions of euros, unaudited)

Note Q2 2015 Q2 2014 6M 2015 6M 2014

Interest income 18 16.314 13.992 32.193 28.553

Interest expense 19 -1.692 -1.925 -3.440 -3.883

Net interest income 14.622 12.067 28.753 24.670

Net fee income 0.530 0.485 1.038 0.982

Net gain/loss on financial transactions -0.316 -0.117 -0.406 -0.184

Other income 20 1.319 1.725 2.591 3.650

Total income 16.155 14.160 31.976 29.118

Salaries and associated charges -3.793 -3.172 -7.094 -6.210

Other operating expenses 21 -2.222 -2.090 -5.144 -3.975

Depreciation and amortisation expense -0.166 -0.122 -0.321 -0.241

Impairment losses on loans and financial investments -6.365 -6.345 -13.606 -12.225

Other expenses 22 -0.660 -0.741 -1.403 -1.748

Total expenses -13.206 -12.470 -27.568 -24.399

Profit before income tax 2.949 1.690 4.408 4.719

Income tax expense/income -0.156 0.133 -0.302 -0.290

Profit for the period 2.793 1.823 4.106 4.429

Other comprehensive incomeOther comprehensive income to be reclassified to profit or loss in subsequent periods:Exchange differences on translating foreign opera-tions -0.007 0.036 -0.021 0.050Net profit on hedges of net investments in foreign operations 0.008 -0.007 0.088 -0.061Net other comprehensive income to be reclassified to profit or loss in subsequent periods 0.001 0.029 0.067 -0.011

Other comprehensive income for the period 0.001 0.029 0.067 -0.011

Total comprehensive income for the period 2.794 1.852 4.173 4.418

Basic earnings per share (EUR) 35 23 51 55 Diluted earnings per share (EUR) 35 23 51 55

Consolidated statement of comprehensive income



Note 6M 2015 6M 2014

Cash flows from operating activities

Interest received 29.061 26.323

Interest paid -3.136 -3.440

Salary and other operating expenses paid -13.531 -10.970

Other income received 3.124 3.706

Other expenses paid -2.154 -1.756

Fees received 0.569 0.869

Fees paid -0.083 -0.093

Recoveries of receivables previously written off 5.479 1.846

Received for other assets 0.317 0.108

Paid for other assets -0.241 -0.087

Loans provided -82.512 -66.041

Repayment of loans provided 59.633 51.139

Change in mandatory reserves with central banks -0.035 1.553

Proceeds from customer deposits 31.653 24.659

Paid on redemption of deposits -24.899 -24.740

Net acquisition and disposal of trading portfolio -11.528 -

Income tax paid/received 0.136 -0.961

Effect of movements in exchange rates 0.005 0.109

Net cash used in operating activities -8.142 2.224

Cash flows from investing activities

Acquisition of property and equipment and intangible assets -0.207 -0.152

Proceeds from sale of property and equipment 0.001 0.007

Proceeds from sale of investment properties 0.132 -

Change in term deposits 0.100 -

Acquisition of financial instruments -3.864 -7.694

Proceeds from redemption of financial instruments 3.380 11.342

Net cash used in/from investing activities -0.458 3.503

Cash flows from financing activities

Dividends paid -1.500 -1.080

Net cash used in financing activities -1.500 -1.080

Effect of exchange rate fluctuations 0.168 -0.185

Decrease in cash and cash equivalents -9.932 4.462

Cash and cash equivalents at beginning of period 33.602 28.377

Cash and cash equivalents at end of period 2 23.670 32.839

Consolidated statement of cash flows



Attributable to equity holders of the parent

Share capital

Statutory capital reserve

Other re-serves

Retained earnings

Total

Balance at 1 January 2014 8.000 0.800 0.887 59.978 69.665Profit for the period - - - 4.429 4.429Other comprehensive incomeExchange differences on translating foreign ope-rations - - 0.050 - 0.050Net loss on hedges of net investments in foreign operations - - -0.061 - -0.061Total other comprehensive income - - -0.011 - -0.011Total comprehensive income for the period - - -0.011 4.429 4.418Dividend distribution - - - -1.080 -1.080Total transactions with owners - - - -1.080 -1.080

Balance at 30 June 2014 8.000 0.800 0.876 63.327 73.003

Balance at 1 January 2015 8.000 0.800 0.894 71.565 81.259Profit for the period - - - 4.106 4.106

Other comprehensive incomeExchange differences on translating foreign ope-rations - - -0.021 - -0.021Net loss on hedges of net investments - - 0.088 - 0.088

in foreign operations - - 0.088 - 0.088

Total other comprehensive income - - 0.067 - 0.067

Total comprehensive income for the period - - 0.067 4.106 4.173

Dividend distribution - - - -1.500 -1.500

Total transactions with owners - - - -1.500 -1.500Balance at 30 June 2015 8.000 0.800 0.961 74.171 83.932

Consolidated statement of changes in equity



The condensed consolidated interim financial sta-tements of Bigbank AS as at and for the second quarter ended 30 June 2015 have been prepa-red in accordance with the international financial reporting standard IAS 34 Interim Financial Re-porting as adopted by the European Union. The interim financial statements do not include all the information required for full annual financial statements and they should be read in conjunc-tion with the Group’s latest published annual fi-nancial statements as at and for the year ended 31 December 2014, which have been prepared in accordance with International Financial Repor-ting Standards (IFRS EU). The condensed interim financial statements have been prepared using the same accounting policies and measurement bases

that were applied in preparing the latest annual financial statements as at and for the ended 31 December 2014. The new and revised standards and interpretations effective from 1 January 2015 do not have a significant impact on the Group’s financial statements as at the preparation of the interim report.

This interim report has not been audited or ot-herwise reviewed by auditors and only includes the condensed consolidated financial statements of the Group. The financial statements are presen-ted in millions of euros, unless otherwise indica-ted and numerical data has been rounded to three digits after the decimal point.

Note 2. Cash equivalents

As at 30 June 2015 31 Dec 2014 30 June 2014

Demand and overnight deposits with credit institutions* 11.999 11.079 17.260Term deposits with credit institutions with maturity of less than 1 year* 10.877 2.585 14.788

Surplus on mandatory reserves with central banks* 0.794 19.938 0.791Term deposits with credit institutions with maturity of over one year 0.050 - -

Mandatory reserves 0.281 0.212 0.200

Interest receivable from central banks 0.004 0.001 0.012

Total cash and balances at banks 24.005 33.815 33.051

of which cash and cash equivalents 23.670 33.602 32.839

* Cash equivalents

Notes to the condensed consolidated interim financial statements

Note 1. Accounting policies



Note 3. Financial assets held for trading

Estonia Latvia Lithuania Finland Spain Sweden Total

Loan receivables from customers

54.418 76.865 48.099 52.831 34.513 45.948 312.674

Impairment allowances for loans

-7.779 -13.886 -5.499 -2.491 -5.140 -3.749 -38.544

Interest receivable from customers

6.276 9.286 1.674 1.114 1.667 1.339 21.356

Impairment allowances for interest receivables

-2.623 -3.327 -0.717 -0.145 -0.491 -0.225 -7.528

Statistical impairment allowance

-1.233 -2.636 -0.399 -0.301 -0.287 -0.219 -5.075

Total loans to customers, incl. interest and allowances

49.059 66.302 43.158 51.008 30.262 43.094 282.883

Share of region 17.3% 23.5% 15.3% 18.0% 10.7% 15.2% 100.0%

Loans to customers as at 30 June 2015

As at 30 June 2015

31 Dec 2014

Total Financial assets held for trading 11.264 -

Financial assets held for trading by issuer

Government bonds 3.474 -

Credit institutions 4.381 -

Corporate bonds 3.409 -

Financial assets held for trading by currency

EUR (euro) 11.264 -Financial assets held for trading by rating

Aa1-Aa3 1.741 -

A1-A3 3.607 -

Baa1-Baa3 5.916 -

Note 4. Loans to customers




Loan receivables from customers 57.137 75.336 43.159 53.088 33.205 42.291 304.216

Impairment allowances for loans -8.690 -14.411 -5.663 -4.982 -4.508 -2.578 -40.832Interest receivable from customers 7.180 9.689 2.158 1.421 1.573 1.384 23.405Impairment allowances for interest receivables -2.584 -3.279 -0.876 -0.239 -0.442 -0.195 -7.615

Statistical impairment allowance -1.200 -2.035 -0.660 -0.065 -0.029 -0.084 -4.073Total loans to customers, incl. interest and allowances 51.843 65.300 38.118 49.223 29.799 40.818 275.101

Share of region 18.9% 23.7% 13.9% 17.9% 10.8% 14.8% 100.0%

Loans to customers as at 31 December 2014

Note 5. Loan receivables from customers by due dates

As at 30 June 2015 31 Dec 2014

Up to 1 year 151.845 158.722

1-2 years 51.691 51.482

2-5 years 92.738 80.481

More than 5 years 16.400 13.531

Total 312.674 304.216

Not past due

30 days or less

31-60 days

61-90 days

Over 90 days

Total

Loans against incomeLoan portfolio 174.502 23.173 6.529 4.644 67.232 276.080Impairment allowance -4.870 -0.752 -0.392 -0.367 -32.263 -38.644Surety loansLoan portfolio 5.406 1.037 0.993 0.086 5.073 12.595Impairment allowance -0.386 -0.100 -0.038 -0.020 -2.821 -3.365Loans secured with real estateLoan portfolio 18.138 1.868 0.413 0.445 2.454 23.318Impairment allowance -0.586 -0.094 -0.007 -0.007 -0.802 -1.496Loans with insurance coverLoan portfolio 0.199 0.061 0.006 0.005 0.175 0.446Impairment allowance -0.011 -0.006 - -0.001 -0.088 -0.106Loans against other collateralsLoan portfolio 0.037 0.192 0.004 - 0.002 0.235Impairment allowance -0.001 -0.006 - - -0.001 -0.008Total loan portfolio 198.282 26.331 7.945 5.180 74.936 312.674Total impairment allowance -5.854 -0.958 -0.437 -0.395 -35.975 -43.619

Ageing analysis as at 30 June 2015Note 6. Ageing analysis of loan receivables



Not past due

30 days 31-60 days

61-90 days

Over 90 days

Total

Loans against income

Loan portfolio 160.959 18.546 6.342 2.939 77.173 265.959

Impairment allowance -3.916 -0.630 -0.426 -0.344 -34.195 -39.511

Surety loans

Loan portfolio 6.003 1.224 0.301 0.471 5.865 13.864


Loans secured with real estate

Loan portfolio 15.838 3.801 0.265 0.186 3.406 23.496


Loans with insurance cover

Loan portfolio 0.374 0.075 0.010 0.013 0.269 0.741


Loans against other collaterals

Loan portfolio 0.148 - 0.005 - 0.003 0.156

Impairment allowance -0.004 - - - -0.001 -0.005

Total loan portfolio 183.322 23.646 6.923 3.609 86.716 304.216

Total impairment allowance -4.730 -0.846 -0.504 -0.447 -38.377 -44.904

Ageing analysis as at 31 December 2014

Note 7. Loan receivables from customers by contractual currency

As at 30 June 2015 31 Dec 2014

EUR (euro) 266.726 261.417

LTL (Lithuanian litas) - 0.508

SEK (Swedish krona) 45.948 42.291

Total loan receivables from customers 312.674 304.216

Note 8. Impairment allowances by loan assessment category

Loan recei-vables

Impairment allowance for

loans

Interest recei-vables

Impairment allowance for loan interest

Total im-pairment

allowancesCollectively assessed items 276.885 -21.602 17.913 -4.492 -26.094

Individually assessed items 35.789 -16.942 3.443 -3.036 -19.978

Statistical impairment allowance - -5.075 - - -5.075

Total 312.674 -43.619 21.356 -7.528 -51.147

Impairment allowances as at 30 June 2015



Q2 2015 Q2 2014 6M 2015 6M 2014Recovery of loan and interest receivables written off the statement of financial position 5.838 1.793 7.367 2.133

Increase in allowances for loan and interest receivables -11.897 -7.974 -20.548 -14.050

Impairment losses on other receivables -0.306 -0.164 -0.425 -0.308

Total impairment losses -6.365 -6.345 -13.606 -12.225

Impairment losses on loans, receivables and financial investments

30 June 2015 31 Dec 2014 30 June 2014

Balance at beginning of year -52.520 -44.815 -44.815Loan and interest receivables written off the statement of financial position 21.993 20.281 8.582

Increase in allowances for loan and interest receivables -20.548 -28.117 -14.050

Effect of movements in exchange rates -0.072 0.131 0.071

Balance at end of period -51.147 -52.520 -50.212

Change in impairment of loans, receivables and financial investments


Up to 30 days 0.184 0.703 0.301 0.158 0.077 0.258 1.681

31 - 60 days 0.211 0.430 0.175 0.085 0.064 0.091 1.056

61-90 days 0.313 0.323 0.165 0.090 0.070 0.150 1.111

Over 90 days 14.535 22.825 8.872 5.710 7.586 9.845 69.373

Total 15.243 24.281 9.513 6.043 7.797 10.344 73.221

Past due loans as at 30 June 2015

Note 9. Past due loans


Up to 30 days 0.547 0.658 0.282 0.146 0.088 0.099 1.820

31 - 60 days 0.557 0.410 0.131 0.126 0.090 0.029 1.343

61-90 days 0.798 0.236 0.097 0.103 0.059 0.001 1.294

Over 90 days 17.351 25.833 10.046 12.195 6.951 7.260 79.636Total 19.253 27.137 10.556 12.570 7.188 7.389 84.093

Past due loans as at 31 December 2014

Impairment allowances as at 31 December 2014

Loan recei-vables

Impairment allowance for

loans

Interest recei-vables

Impairment allowance for loan interest

Total im-pairment

allowancesCollectively assessed items 268.955 -24.065 20.380 -5.015 -29.080

Individually assessed items 35.261 -16.767 3.025 -2.600 -19.367

Statistical impairment allowance - -4.073 - - -4.073

Total 304.216 -44.905 23.405 -7.615 -52.520



Note 10. Held-to-maturity financial assets

As at 30 June 2015 31 Dec 2014

Acquisition cost of the debt securities portfolio 1.671 1.186

Accrued interest 0.001 -

Total held-to-maturity financial assets 1.672 1.186

Held-to-maturity financial assets by issuer

Government bonds 1.672 1.186

Held-to-maturity financial assets by currency

EUR (euro) 1.672 -

LTL (Lithuanian litas) - 1.186

Held-to-maturity financial assets by rating

A1-A3 0.632 -

Baa1-Baa3 1.040 1.186

Held-to-maturity financial assets include acqui-red bonds that the Group has the intention and

ability to hold until maturity.

Note 12. Prepayments

Note 11. Other receivables

As at 30 June 2015 31 Dec 2014

Late payment interest and penalty payments receivable - 0.010

Fees receivable 0.342 0.375

Collection, recovery and other charges receivable 1.733 2.454

Guarantee and deposit payments made 0.107 0.140

Miscellaneous receivables 2.545 0.266

Impairment allowance for other receivables -0.884 -1.181

Total 3.843 2.064

As at 30 June 2015 31 Dec 2014

Prepaid taxes 2.627 3.238

Other prepayments 0.660 0.729

Total 3.287 3.967

The table above shows only loan principal that is past due. In accordance with the terms of the loan agreements, the Group may terminate the agreement unilaterally if at least three scheduled

payments are in arrears. When an agreement is terminated, the customer has to settle the entire loan amount.



Note 14. Deposits from customers

As at 30 June 2015 31 Dec 2014Term deposits 247.290 239.033

Term deposits by customer type

Individuals 239.656 233.489

Legal persons 7.634 5.544

Term deposits by currency

EUR (euro) 200.469 202.239

SEK (Swedish krona) 46.821 36.794

Tem deposits by maturity

Maturing within 6 months 51.165 42.111 Maturing between 6 and 12 months 45.541 48.149

Maturing between 12 and 18 months 28.836 22.125




Maturing in over 48 months 28.075 33.212

Average deposit amount 0.020 0.019

Weighted average interest rate 2.8% 3.1%

Weighted average duration until maturity (months) 23.1 25.5

Weighted average total contract term (months) 42.9 45.3

Note 15. Other reserves

30 June 2015 Change 31 Dec 2014 Change 31 Dec 2013

Exchange differences on translating foreign operations

0.087 -0.021 0.108 0.078 0.030

Net gain/loss on hedges of net investments in foreign operations

-0.105 0.088 -0.193 -0.071 -0.122

Asset revaluation reserve 0.979 - 0.979 - 0.979

Total other reserves 0.961 0.067 0.894 0.007 0.887

The investment properties comprise plots, houses and apartments originally pledged by customers as loan collateral and later bought by the Group

through auctions. In prior interim reports these items were recognised under other assets, reclas-sification was performed in the 4th quarter 2014.

Note 13. Investment properties

30 June 2015 31 Dec 2014 30 June 2014

Opening balance at 1 January 1.100 1.382 1.382

Additions 0.013 - -

Sales -0.127 -0.050 -0.019

Net loss from fair value adjustment - -0.232 -Closing balance at end of period 0.986 1.100 1.363



Position in the statement of financial position

Position off the statement of financial position

Net position

Assets Liabilities Assets Liabilities

EUR (euro) 282.071 204.373 4.558 0.829 81.427

SEK (Swedish krona) 51.949 47.103 - 4.622 0.224

GBP (British pound) 0.033 - - - 0.033

Net currency positions as at 30 June 2015Note 16. Net currency positions

Position in the statement of financial position

Position off the statement of financial position

Net position

Assets Liabilities Assets LiabilitiesEUR (euro) 275.379 206.059 8.208 1.076 76.452

LTL (Lithuanian litas)* 1.755 0.256 - - 1.499

SEK (Swedish krona) 46.086 37.108 - 8.107 0.871

GBP (British pound) 0.131 - - - 0.131

Net currency positions as at 31 December 2014

The loans provided by the Group are denominated in the currency of the corresponding region or in euros.

* On 1 January 2015, the Republic of Lithuania joined the euro area and all currency positions in Lithuanian litas were conver-ted to euros on that date.

Note 17. Contingent liabilities and assets pledged as collateral

As at 30 June 2015 31 Dec 2014Irrevocable transactions, of which 0.829 1.076

Issued bank guarantees 0.090 0.090

Credit lines and overdrafts 0.739 0.986

Assets pledged and encumbered with usufruct, of which 3.081 3.619 Mortgages* 2.449 2.449

Bonds and deposits encumbered with collateral 0.632 1.170

* The liabilities related to mortgages have been settled by the date of release of this report.

Note 18. Interest income

Q2 2015 Q2 2014 6M 2015 6M 2014

Interest income on loans to customers 16.263 13.956 32.128 28.488

Interest income on financial assets held for trading 0.046 - 0.052 -

Interest income on deposits 0.004 0.018 0.011 0.032

Interest income on held-to-maturity financial assets 0.001 0.018 0.002 0.033Total interest income 16.314 13.992 32.193 28.553



Note 19. Interest expense

Q2 2015 Q2 2014 6M 2015 6M 2014

Interest expense on deposits 1.692 1.925 3.440 3.883

Note 20. Other income

Q2 2015 Q2 2014 6M 2015 6M 2014

Income from debt recovery proceedings 1.241 1.661 2.434 3.536

Miscellaneous income 0.078 0.064 0.157 0.114

Total other income 1.319 1.725 2.591 3.650

Note 21. Other operating expenses

Q2 2015 Q2 2014 6M 2015 6M 2014

Marketing expenses 1.414 1.099 2.932 2.015

Office, rental and similar expenses 0.305 0.321 0.735 0.674

Miscellaneous operating expenses 0.503 0.670 1.477 1.286

Total other operating expenses 2.222 2.090 5.144 3.975

Note 22. Other expenses

Q2 2015 Q2 2014 6M 2015 6M 2014

Expenses related to enforcement proceedings 0.282 0.355 0.653 0.683

Legal regulation charges 0.107 0.136 0.214 0.291

Expenses from investment properties 0.004 0.007 0.012 0.018

Onerous contracts provisions - - - 0.300

Miscellaneous expenses 0.267 0.243 0.524 0.456

Total other expenses 0.660 0.741 1.403 1.748

Note 23. Related parties For the purposes of these financial statements, parties are related if one controls the other or exerts significant influence on the other’s business decisions. Related parties include:

• shareholders of Bigbank AS;

• members of Group companies’ management and supervisory boards;

• close family members of the above;

• companies connected with the above persons, except where the persons cannot exert significant influence on the company’s business decisions.

As at 30 June 2015, the Group had no interest and deposit liabilities to related parties.



Statement by the management boardAccording to the knowledge and belief of the Ma-nagement Board of Bigbank AS, as at the date of publication:

• the figures and additional information presented in the condensed consolidated interim report for the second quarter of 2015 are true and complete; and

• the condensed consolidated financial statements provide a true and fair view of the Group’s financial position, financial performance and cash flows.

The condensed consolidated interim report as at

30 June 2015 has been prepared in accordance with the international financial reporting standard IAS 34 Interim Financial Reporting as adopted by the European Union and with the information disclo-sure requirements established by the Bank of Es-tonia.

Bigbank AS is a going concern.

Kaido Saar Chairman of the Management Board

31 August 2015[digitally signed]

Ingo PõderMember of the Management Board


Agur JõgiMember of the Management Board


2015...• 10.7% spain. at 30 june 2015, loans to customers totalled 282.9 million euros, comprising...

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